Last updated : December 10, 2025 9:49 am
India has deep strengths in reverse engineering and API development, while Russia has strong capabilities in certain vaccines, biologicals, and niche therapeutic segments. Collaboration can significantly shorten R&D timelines
In an exclusive interview with Pravin Prashant, Executive Editor, Indian Pharma Post, Manish Kumar, Vice-Chairman, Moscow Chamber of Commerce, Indian Commission; and President, Soltex Group shared insights on Indo-Russian trade imbalance, deeper collaboration, expansion of Indian pharma companies in Russia, and joint R&D and co-production of APIs. Excerpts of the interview:
India and Russia have set a target of US $100 billion in annual bilateral trade by 2030. Given the current imbalance, India’s imports from Russia stand at US $63.8 billion whereas exports stand at US $4.9 billion. How realistic is this goal, and how can we achieve it?
Earlier, we wondered how we would ever reach US $20 or $30 billion in trade but the geopolitical landscape has changed rapidly. Today, the target has shifted to US $100 billion. The real challenge, however, is the trade imbalance as India exports only about US $5 billion to Russia. To realistically move towards US $100 billion, the Indian business community must take a proactive approach and actively explore emerging opportunities.
The recent visit of President Vladimir Putin, along with nine ministers, shows Russia’s strong interest in engaging with India’s economy. Now it is India’s turn. Our businesses must decide whether they want to stay hesitant because of sanctions or actively engage with Russia. Without the participation of the Indian industry, this target cannot be achieved. Increasing crude oil imports alone will not solve the problem. India must expand its exports in organic chemicals, speciality chemicals, technical textiles, food products, processed food, and many more. Services and skilled manpower should also be considered. If Indian companies look seriously at all these areas, achieving the US $100 billion target becomes possible.
How can the Indian chemical fraternity benefit from deeper collaboration with Russia?
The chemical industry must recognize that Russia is extremely rich in petrochemical resources such as crude, natural gas, ethylene, and other key feedstocks. There are many intermediates and molecules where Indian companies can collaborate with Russian producers. So far, the main example is the Reliance–SIBUR joint venture for elastomers. But there is room for many more collaborations. Russia can supply raw materials for Indian refineries and polymer producers for products like hexane derivatives, phenol, maleic anhydride, methyl acrylate, glycerine, butanol, methyl ethyl ketone, and many others. These can be sourced at competitive prices, especially since Russia’s exposure to European markets has reduced.
Indian companies can consider setting up projects in Russia, establishing joint ventures, or sourcing basic raw materials for value addition in India and then re-exporting to global markets. Even in pharmaceuticals, Russia can supply certain bulk drugs, for example, HSN hydroxy methyl compounds. There are many avenues for collaboration.
What is stopping Indian companies, whether in chemicals, pharmaceuticals, or petrochemicals, from engaging with Russian companies in a big way?
The main issue is lack of accurate information. Perceptions have been created, especially by Western media, about Russia’s systems, stability, logistics, and finance. But the reality is different. Everything is functioning smoothly. After the recent visit, it is even clearer: three to four major Russian banks are already operating in India, enabling direct trade in rupees and ruble. There is no dependence on SWIFT or the US dollar. Logistics are working efficiently, shipments from Indian ports to Western Russian ports take about 20 days. Regular services operate between Saint Petersburg/Vladivostok and Indian ports like Nhava Sheva and Mundra.
Insurance is available and end-to-end logistics services exist. There are no technical obstacles related to finance or transport. The real question is whether Indian companies are willing to engage, or whether they are unnecessarily worried about sanctions. The fact is, China is doing business with Russia. Turkey is doing business with Russia. Many others are too. So why not India?
What measures are planned to simplify Russia’s lengthy certification, registration and clinical trial processes, which currently act as non-tariff barriers for Indian pharma and chemical exporters?
It is true that Russia has one of the most stringent and expensive regulatory systems, especially for pharmaceuticals. Compared to many other countries, Russia’s compliance processes are more bureaucratic and take longer. This includes plant GMP certification as well as mandatory clinical trials for each molecule, which can take 12-18 months and cost substantially more.
During this delegation, Russia’s Health Minister, Mikhail Murashko, participated in the discussions. They have agreed in principle to reforms but I will comment in detail only after receiving the official documentation. However, what has been proposed is significant. Acceptance of Indian clinical trial data in Russia and acceptance of Indian bioequivalence studies. Also, the faster processing for GMP certification and shortening timelines for approvals. If implemented, these steps will greatly ease market entry for Indian pharmaceutical companies.
How can Indian pharmaceutical companies expand their presence in Russia, especially in generics, cancer therapies, and life-saving medicines to help balance the trade deficit?
Today, only four or five major Indian pharma companies have a strong presence in Russia but the opportunity is far bigger now. After American and European companies exited Russia, they left behind factories, assets and market gaps, particularly in oncology and cardiology, areas classified as vital by Russia’s Ministry of Trade. For these segments, Russia is offering very attractive incentives to Indian firms, such as 5–7-year assured procurement contracts from the government; long-term supply agreements at guaranteed pricing formulas; credit lines at 3% interest; land for manufacturing at nominal cost, sometimes even as low as one ruble; and priority access to raw materials and regulatory fast-tracking. Indian pharma companies should explore these opportunities immediately. The Russian market is ready, open, and offering unprecedented terms for Indian investors.
What is the potential for joint R&D and co-production of APIs and technical intermediates between India and Russia to support the Make in India initiative?
There is tremendous potential. India has deep strengths in reverse engineering and API development, while Russia has strong capabilities in certain vaccines, biologicals, and niche therapeutic segments. Collaboration can significantly shorten R&D timelines. A knowledge-sharing framework already exists, India and Russia have a bilateral scientific and technical cooperation committee, with funding mechanisms in place. What is needed now is for institutions and companies from both sides to sign MoUs, form joint R&D boards, and push promising projects toward commercialization with manufacturing in both countries.